The flourishing real estate market continues to surprise us almost daily, and buyers now outnumber sellers. Given these market conditions, people may be tempted to sell their home privately in order to avoid paying a real estate agent’s commission.

In April 2004, Jacques St-Pierre, a real estate marketing professor and director of the UQAM-SITQ real estate chair, wrote in La Presse: “Homeowners who are drawn to this approach must be careful: there are traps and in the long run you could end up losing a lot of money. You run the risk of not getting market value. I am not endorsing real estate agents but they do have a role to play. And if they succeed in fulfilling this role, the seller will come out a winner.” (unofficial translation)

According to Mr. St-Pierre, three costly mistakes pose a threat to homeowners who act as sellers:

1. The most common: undervaluing their property

2. The second: omissions in the seller’s disclosure (problems with the property or its features). A purchase offer may be cancelled as a result of such omissions.

3. The third: non-existence of legal documents to conclude the transaction. This will in turn mean incurring significant added notary fees. “It’s not just a matter of selling – it must be a proper sale. Remember, this is a legal contract”, stresses Mr. St-Pierre.

Here are several more reasons why you may want to consider listing your property with an agent who is a member of the Chambre immobilière de l'Outaouais:

1. Are you available 24/7 to respond to enquiries about your property? You will receive numerous calls and they won’t always come at the most opportune times. In addition, you will have to schedule appointments and oversee both planned and impromptu showings.

2. Are you able to write up a description of your property highlighting the main features of your home and that will also provide you with adequate legal protection?

3. Will you be able to act as a negotiator with potential buyers and respond to anything they might contest?

4. Will you be able to properly assess all serious prospects and ensure that your prospective buyer is solvent?

5. Will you be able to follow up with buyers without giving the impression that you are a seller acting out of desperation?

6. Do you have a good understanding of all the intricacies involved in obtaining financing from a financial institution?

7. Do you have the training needed to carry out a transaction and fill out all the legal documents that are required?

8. Do you have sufficient knowledge of the laws governing the real estate sector?

9. Will you be able to objectively decide on the market value of your property?

10. Will you be able to provide showings of properties similar to yours so that buyers can draw comparisons?

11. Do you have marketing and communication skills?

12. Will you be willing to invest time and money to market your property by putting up advertising billboards, running ads in daily newspapers and specialized magazines, and preparing documentation to distribute to prospective buyers – all the while ensuring that you comply with the laws governing all real estate transactions?

13. Will you be able to provide a written record of everything – using the correct wording – to ensure the legal protection of both parties?

14. Will you display the necessary determination and perseverance in order to get the best offer and defend your interests?

15. Do you have professional liability insurance as well as a compensation fund?

16. Will you be able to oversee the transaction and the necessary follow-up to make sure it doesn’t fall through?

17. Will you be able to keep your emotions in check and cope with the stress?

Have you also thought about the following?

As an independent seller, you will not have access to the Multiple Listing Service^® (MLS^®), which is available to the more than 400 real estate agents and brokers who are members of the Chambre immobilière de l'Outaouais.

People who visit properties that are designated as “For sale by owner” often turn out to be curious “lookers”, bargain hunters, speculators and buyers with limited financial capacity. Do you have the time to devote to these types of buyers?

Serious buyers generally pass up private sales given the fact that they have hired a real estate agent. By selling your home privately, you are foregoing a significant group of potential buyers and the opportunity to secure the best price for your property.